SeekingAlpha: “Get Ready To Profit From The ‘Dot-Com Boom 2.0′”

SeekingAlpha.com a publication that goes out to stock investors.  In a post entitled “Get Ready To Profit From The ‘Dot-Com Boom 2.0″

The article starts out with the subtitle:

“”Dot-com is so 1990s”
“Starting March 23, the Internet Corporation for Assigned Names and Numbers (ICANN) will increase the availability of Web addresses by assigning some 1,900 domain suffixes, the part of a website address that ends in .com, .org or .net. The project has been five years in the making, but this year looks like the watershed moment for many of the companies that will benefit.

An additional 1,900 domain suffixes represents an increase of 8,600% over the 22 currently in use.

And while the project may not bring tech the valuations seen in the 1990s, it could mean a surge in revenue for some industries in the sector. Specifically, companies in Web registry, search and advertising stand to benefit”.

The post then goes out to call out 4 public companies that the author says is in position to benefit from the big expansion: Verisign (VRSN); Google, Inc (GOOG); Marchex (MCHX) and ValueClick (VCLK).

I’m not sure about how ValueClick got into the story but certainly the author should have included five other  public companies that are much more directly positioned to gain from the new gTLD program:

Neustar, Inc (NSR) the back end provider for hundreds of new gTLD applications; Demand Media, Inc. (DMD) which actually applied for over 25 new gTLD’sas a partner with Donuts on over 100 New gTLD applications, is Donuts back end provider and owns Enom.com a top 5 domain name registrar; Web.Com (WWWW) which owns two top 10 domain registrars, Register.com and NetworkSolutions.com and Tucows.com (TCX) which is another top 10 domain registrar and has a few of its own new gTLD applications, Amazon (AMZN) which has over 75 applications would be another new gTLD play.

Comments

  1. says

    My opinion……
    This guy is flying over at 50,000 feet and needed to crank out a story and in 30 minutes there you have it.
    Guess what? Probably going to happen 19 MILLION more times.
    But it’s ok. Nothing bad. Just a lot of bad writing and uninformed folks writing them is about to explode like you will not believe.

  2. says

    There’s going to be a ton of “The End Of The .com Era” stories in the coming months.

    As far as I’m concerned, all I’ll be doing is chuckling.
    For whatever reason, some people ‘get it’ on domain names, most do not. You can be certain that 100% of these articles are being written by those who do not.

    You can appraise the gravity of what they’re saying by this simple irony; virtually all of them will be publishing these articles on the very TLD that they’re heralding the ‘death’ of. If they don’t understand the implication of this, why should we waste time trying to explain it?

  3. B.ElZA. says

    I believe that the new TLDs will have significant effect against the matching left of the dot domains. For example, the value of domains like (example.com) will drop significantly if there IS (.example) as a TLD. On the other hand, four interesting things will also happen in the whole market:
    1. One generic key word domains that do NOT have a matching TLD (right of the dot matching word) will increase significantly. For example, domains likes (example.com),(example.net),(example.org),(example.xxx) will increase value only if there is NO (.example) as TLD
    2. Value of combined words.com (meaningful phrases/ sentences descriptive of products and services.com) will increase.
    3. Brandable shortish .com will icrease (words that have no matching TLDs)
    4. Market- within- a market domains(phrase used first be the Castello) will be valuable.Generally, domains that make SENSE and can send a quick and CLEAR message IMMEDIATELY when read or looked at, will increase.(again, taking into consideration they do NOT have a matching TLD, so they are different, clear and not confusing )

  4. says

    A lot of this speculation around new TLDs is pure hyperbole and mostly wrong.

    The effect on traditional search engines will be *beneficial* not detrimental – you think people are going to sit there typing “madrid.carrental”, uh no, maybe “madrid.hertz”, uh no, how about “madrid.rentals?” I doubt it. They’re going to go to google and type “car rentals, madrid”.

    So much so that the location bar will be deprecated. I got called an idiot for saying that would happen in 2007 and since then that’s exactly been the trend in browsers.

    Second: the effect on the big three: com, net, org will be a reciprocal effect, not a detrimental one. COM/NET/ORG and the known ccTLDS (basically what Frank Schilling always said “just worry about com,net,org and the cctld you do business in”) – they will become more valuable because they are known, trusted and people will think of them as “normal” not one of these “weird new things”.

    Me I don’t give a crap. It’s all just DNS under the hood and it matters not whether it’s killer.com or ksdhlaksdhgklasdhg.o2o83y4iuhkjsht. Who cares.

    A lot of money is going to go up in smoke around these things. Forget buying Neustar or web.com because they will operate a bunch of new .crap TLDs, you buy Verisign whenever it gets cheap because they will run .com forever. That’s money you can take to the bank.

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